We had the same thing many times in the concrete business. Some jackwad would bid a job in at less than our costs, do the flatwork, pull a good draw and disappear. Then when they wanted us to come in and do the technical stuff and clean up the mess, it was cost plus and if you don't like it, find another jackwad to do it cheaper.
But on the rod builder, Like Sam says, he was probably a guy who liked building rods, turned it into a business he didn't have the skills to manage. Plus doing things your own way is a lot different than doing it for a customer. I strongly dislike commissioned work because now I have to try and be in the customers head doing it to their vision and my creative process just doesn't function that way.